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While the broader markets reacted hesitantly to the Aam Aadmi Party’s victory in the Delhi Assembly polls, stocks of companies owned by the Ambani brothers had a choppy day on the bourses.
The Aam Aadmi Party, and its earlier avatar in the India Against Corruption movement, have in the past repeatedly locked horns with the Ambani brothers, beginning with allegations of their stashing away money in Swiss bank accounts. More recently, in its election manifesto, the AAP has promised cheaper electricity to the national capital. Anil Ambani-owned Reliance Infrastructure and Tata Power supply power to the city.
Even during its 49-day rule, the Arvind Kejriwal-led Government had directed the anti-corruption bureau to register an FIR against Mukesh Ambani and the then UPA Ministers in the gas pricing scam. In its last stint, AAP had also accused the power majors of being opaque in tariff computation. Now that it has returned to power, it may force an audit of these companies. Following AAP’s landslide victory, Mukesh Ambani’s flagship Reliance Industries ended the day down ₹14.60 (1.63 per cent) at ₹882.70, while Reliance Industrial Infrastructure, which builds gas pipelines for its parent, closed at ₹426.45, down 1.39 per cent.
Companies in the Anil Ambani stable too fell, but to a lesser extent. Reliance Power fell 0.35 per cent to close at ₹56.35, while financial services firm Reliance Capital ended the session 0.68 per cent lower at ₹436.15.
RCom hits 52-week low Internet access and telecom firm Reliance Communications hit a new 52-week low on Tuesday at ₹66.60, before recovering during the session to close at ₹68.40, a gain of 1.18 per cent. Reliance Infrastructure, which supplies electricity to Delhi, fell to ₹400 intraday before rallying in the last half hour to close, surprisingly, in the green at ₹421.65, up 0.57 per cent.
Analysts and industrialists, however, feel that the new government would be industry friendly and are hopeful that it would not indulge in handing out excessive amounts of doles.
“AAP being a maiden party will try to give their best and overcome the failures of the past,” said Rohit Gadia, Founder & CEO, CapitalVia Global Research.
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